Assume that Ms. Sawyer's salary is $42,000, up from $40,000 last year, while the CPI is 157.5 this year, up from 150 last year. This means that Ms. Sawyer's real income has
A) increased.
B) decreased.
C) stayed the same.
D) It depends on which year is the base year.
C
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All of the following are characteristics of stock except
A) stock does not represent a promise to repay a fixed amount of funds. B) stock promises to repay a fixed amount to of funds to stock owners. C) stock represents ownership in a firm. D) dividends paid to owners of stock represent a firm's profits.
According to the real business cycle model
A) increases in aggregate demand do not affect GDP. B) increases in aggregate demand lower the price level. C) increases in aggregate demand raise GDP. D) increases in aggregate demand lower GDP.
Which of the following had resulted from the Smithsonian agreement of 1971?
a. Devaluation of the U.S. dollar b. Dissolution of a fixed exchange rate regime c. Appreciation of the U.S. dollar d. Establishment of an equilibrium exchange rate e. Laissez-faire in the foreign exchange market
The Yankee Candle Company, in Hatfield, Massachusetts, makes scented candles. When strawberry-scented candles are made, townspeople enjoy the scent that covers the town. When potpourri-scented candles are made, people stay indoors to avoid the scent. We can infer that if the scented-candle markets are in equilibrium
a. neither strawberry nor potpourri scented candles will be produced b. strawberry candles' prices are higher than the socially optimum c. potpourri candles' prices are higher than the socially optimum d. candle production generates only negative externalities e. candle production technologies are inefficient